A fast offer from the rideshare company’s insurance company feels like a lifeline—a quick way to handle mounting bills and move forward. But accepting that offer is a final decision. It closes the book on your claim, for good.
Before you sign any documents, it is important to appreciate what you are actually agreeing to. An early offer rarely accounts for the full, long-term impact of your injuries. You only get one chance to resolve your claim fairly.
This decision is too significant to make under pressure. At MNH Injury Lawyers, we believe in clear, straightforward advice. If you have been injured in a rideshare accident and are looking at a settlement offer, a rideshare accident lawyer in Edmonton, Alberta can provide a clear assessment of your situation.
Call us at (888) 664-5298 for a no-obligation consultation.
GET YOUR FREE CONSULTATION NOW!
Why Did I Get a Settlement Offer So Quickly?
Receiving a settlement offer shortly after a rideshare accident might seem like a positive development. It suggests the insurance company is responsive and ready to help. However, the speed of the offer is no accident. The primary role of an insurance adjuster is to resolve claims for the lowest cost that is reasonable for their side. A quick settlement is one of the most effective ways to achieve this goal.
When you accept a settlement, you must sign a document known as a “release.” In simple terms, this document states that in exchange for the settlement funds, you give up any right to seek further compensation for your injuries from this accident. It is a full and final agreement. This means that if your injuries turn out to be more severe than you initially thought, you cannot go back and ask for more money. The case is closed.
The Unknown Future of Your Injury
The problem with a quick offer is that it arrives at a time of great uncertainty. The full extent of an injury is typically not known in the days or weeks following a collision. This is especially true for certain types of harm:
- Traumatic Brain Injuries (TBIs): A concussion or other TBI can have delayed or evolving symptoms. What seems like a mild headache could later develop into persistent cognitive difficulties, memory problems, or mood changes. The long-term consequences of a TBI may not be apparent for months.
- Spinal Cord Injuries: An injury to the spine can have devastating and lifelong consequences, including paralysis, chronic pain, and loss of organ function. The need for future care, home modifications, and medical equipment is something a quick settlement will not properly evaluate.
- Soft Tissue Injuries: An injury like whiplash may be dismissed as minor at first. However, these injuries can sometimes lead to chronic pain, restricted movement, and long-term disability, developing over time into a much more serious condition.
Accepting an early offer effectively transfers all of that future risk from the insurance company directly to you. The amount offered is not a favour; it is a business decision.
What Is a Settlement Supposed to Cover? More Than You Think.
An insurance adjuster may focus on your immediate, easy-to-calculate expenses, like a few weeks of lost pay or the initial cost of physiotherapy. This approach presents a narrow and incomplete picture of what a fair settlement should truly encompass. A proper settlement must account for all the ways the accident has impacted your life, both now and in the future.
In Alberta, compensation, also called damages, is generally broken down into several key categories:
Pain and Suffering (General Damages)
This is compensation for the non-financial losses you have experienced. It acknowledges the physical pain, emotional distress, and the loss of enjoyment of life caused by your injuries. How has the injury affected your hobbies, your family life, your daily routines? This amount is subjective and one of the most challenging parts of a claim to value without extensive legal experience.
Loss of Income and Earning Capacity
This category is not just about the paycheques you have already missed. It also covers the wages you are likely to lose in the future. If your injuries prevent you from returning to your previous job, require you to work reduced hours, or stop you from pursuing a promotion or new career path, that long-term financial loss must be calculated and included in your settlement.
Damaged Property
This is the most straightforward component. It covers the cost to repair or replace your vehicle and any other personal property that was damaged in the rideshare collision.
A fair settlement looks at the whole person and their whole life, not just a handful of receipts. Before you can even consider what an offer from the at-fault driver’s insurer means, you need to use your own first line of defence.
Are You Using Your First Line of Defence? Understanding Section B Benefits
Many people involved in a collision are surprised to learn that their first source of benefits comes from their own auto insurance policy. In Alberta, every standard auto policy includes what are known as Section B or “no-fault” benefits. You are entitled to access them regardless of who was at fault for the accident. Think of it as a safety net designed to provide immediate support.
The settlement you negotiate with the at-fault driver’s insurer is meant to cover losses beyond what your Section B benefits provide. Using these benefits is not an admission of fault, and it will not cause your insurance rates to go up.
What Section B Provides
Section B benefits are a pillar of Alberta’s auto insurance system and provide two main types of support:
- Income Replacement: If your injuries leave you wholly and continuously unable to work, Section B provides disability benefits. These benefits cover 80% of your gross weekly earnings, up to a maximum of $600 per week. An important detail to remember is that there is a 7-day waiting period; benefits do not start until one week after the disability begins. This coverage lasts for up to 104 weeks (two years).
- Medical and Rehabilitation Costs: Section B provides up to $50,000 in coverage for necessary medical treatments that are not paid for by Alberta Health Care or other private health plans. This includes treatments like physiotherapy, chiropractic care, massage therapy, dental work, prescriptions, and psychological counselling.
Why This Matters for Your Settlement
Your Section B benefits are your primary insurer for the first two years for medical needs and income loss up to the defined limits. A settlement from the at-fault driver’s insurance is intended for losses that exceed these benefits, as well as for your pain and suffering. If you accept a settlement from the other driver’s insurer without properly accessing and coordinating your Section B benefits, you could be settling for much less than you are entitled to receive.
Is the Insurance Company Calling Your Injury “Minor”?
In your discussions with an adjuster, you may hear the term “minor injury.” This is not just a descriptive word; it is a specific legal category in Alberta that directly affects your claim.
The provincial government created the Minor Injury Regulation (MIR), which puts a limit, or “cap,” on the amount of money that can be awarded for pain and suffering for certain injuries. Generally, these are sprains, strains, and minor whiplash-associated disorders (WAD).
This is where things get complicated. An injury is only considered “minor” under the law if it does not result in a “serious impairment.” A serious impairment refers to an injury that substantially interferes with your ability to perform the essential tasks of your job or education, or with your normal activities of daily living, and is not expected to improve substantially.
The Insurer’s Advantage
It is in an insurer’s financial interest to classify your injury as minor. Doing so contains the largest and most subjective part of your claim—pain and suffering—to a legislated maximum. Because the definition of a “serious impairment” is complex, an adjuster may interpret your situation in the way that is most favourable to them.
For example, they might argue that the chronic pain from your soft tissue injury does not meet the threshold of a serious impairment. They may suggest a concussion with ongoing symptoms still falls under the cap. This interpretation is not final.
Why You Need a Second Opinion
Whether your injury truly falls under the MIR cap is a medico-legal question of fact and law. A concussion that results in long-term cognitive issues, a soft-tissue injury that develops into chronic pain syndrome, or a jaw injury (TMJ) that causes debilitating headaches may not be “minor” at all. We will work with you and your medical providers to ensure the evidence accurately reflects the seriousness of your injuries and that the regulation is applied correctly in your case.
FAQ for Rideshare Accident Settlements
Your Section B benefits and a settlement from the at-fault driver’s insurance are designed to work together, but they are separate. The settlement is for losses not covered by Section B. However, the interaction can be complex. We ensure any settlement agreement is properly structured to account for benefits you have already received and those you may be entitled to in the future, preventing any issues where you might have to pay back your own insurer.
In Alberta, Transportation Network Companies (TNCs) like Uber and Lyft are required to carry substantial third-party liability insurance policies. This coverage is specifically for when a driver is providing their service. If the damages from a catastrophic injury exceed this commercial policy limit, there may be other legal avenues to pursue for compensation. A lawyer will assess the available insurance and identify all potential routes for recovery.
Your role in the accident determines which insurance policies are accessed first, but it does not change your fundamental right to be compensated for your injuries if someone else was at fault. Passengers, pedestrians, and drivers of other vehicles all have rights and can make a claim. For example, a passenger is covered by the rideshare company’s policy, while another driver would first turn to their own Section B benefits.
Your own insurer’s involvement is a core feature of Alberta’s system. They are responsible for providing your immediate no-fault Section B benefits. This system is laid out in the Standard Automobile Policy (S.P.F. No. 1), which is the foundation for all auto insurance in the province. This allows you to get medical care and disability benefits right away, while the separate, and often longer, process of claiming against the at-fault driver for other damages proceeds.
Yes, depending on the circumstances, it is possible to include the rideshare company itself in a lawsuit. The legal relationship between the driver and the corporation they drive for is a complex issue that we examine in every rideshare case.
Don’t Settle for Uncertainty
An insurance company’s settlement offer is the start of a conversation, not the final word. The most important thing to know before accepting a rideshare settlement is that you have the right to fully understand the value of your claim before making a decision.
As a personal injury lawyer in Edmonton, Alberta, we handle the complexities of your claim so you can focus on your health and recovery. If a rideshare accident has injured you or a loved one, do not sign away your rights for a quick cheque.
Call MNH Injury Lawyers today at (888) 664-5298 for a clear explanation of your options and a plan for the path forward.
